AUD/USD Price Analysis: Breaks out of rising channel and moves lower

AUD/USD has broken out of a rising channel and reached an initial target.
There is a possibility the short-term trend is now bearish and the pair may go lower.

Joaquin Monfort FXStreet

AUD/USD has broken out of the rising channel and fallen to a preliminary target for the breakout, based on the Fibonacci 0.618 ratio of the height of the channel extrapolated from the breakout point lower.

AUD/USD 4-hour Chart

The breakdown from the channel brings the short-term uptrend into doubt. If price now breaks below the 0.6592 day’s low it would help confirm the bearish trend and probably result in a continuation to the next downside target in the 0.6550-8 zone, where the 200 Simple Moving Average (SMA) is situated.

A recovery above the 0.6653 May 23 high, however, would suggest the uptrend was still intact and AUD/USD is likely to go higher.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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